John Mullins was speaking ahead of a meeting of the Oireachtas Joint Committee on Environment, Culture and the Gaeltacht this afternoon.
The establishment and future governance of the new water utility Uisce Éireann will be discussed at the meeting.
Speaking on RTÉ's News at One, Mr Mullins said: "The reality is water is absolutely an essential service, clearly the job Irish water has is to entice people to pay their bills, in accordance with the law of the land."
He added that water is "an absolute essential for living, particularly when you consider you have young children in households".
He said the billing system will be in place by January 2014.
The Government has yet to make a decision on when exactly water charges will be introduced.
Over one million water meters will be rolled out to households between July 2013 and late 2016.
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